How Long Can You Finance a Used Car?

On average, an auto loan term is about 60 to 72 months. You can expect it to increase along with the price of the car. The restrictions on how long you plan to finance a car are pretty loose; the car loan length depends on how much you can afford to pay on a monthly basis. So if you’re asking yourself, how long can I finance a used car in Wheeling? You are asking the right question. Learn more about the maximum length for financing a car, and the advantages and disadvantages of longer and shorter loan terms. The finance team at Straub Chrysler Dodge Jeep Ram has your questions covered!

How Long Can You Finance a Car Loan: Maximum Loan Term

There isn’t a set time period required to pay back your loan. Banks do follow a few guidelines, however; some banks have a policy on used cars that prevent Moundsville buyers from financing vehicles over seven years old and with over 100,000 miles on their odometers. You can chat with your lender to find out the specifics for your situation.

Advantages & Disadvantages of Short-Term Loans

Advantages:

• Low Interest Expenses: You’ll be paying less interest because you’ll have a shorter loan term and a higher monthly payment.
• Faster Pay-Off: Higher monthly payments can help you pay off the loan faster.
• Refinancing: If you want a better interest rate, you can refinance your loan later down the road (assuming your credit score is strong). Which is usually easier with a short-term loan, because your car will spend less time being upside down.

Disadvantages:

• Higher Monthly Payment: The disadvantage to a short term loan is you’ll be paying higher rates month to month. Confirm that you have the budget for a higher monthly payment, as it could potentially impact your financial freedom.

Advantages & Disadvantages of Long Term Loans

Advantages:

• More Affordable Monthly Payment: You will be paying less per month, but for a longer period of time. If your financial situation changes at any point, you’ll have some leeway.

Disadvantages:

• Higher Interest: A long term loan will have a higher interest rate; the longer the loan term, the more interest accrues.
• Vehicle Depreciation: Although depreciation rates do slow down as a car gets older, it’s still depreciating. The longer the length of the auto loan, the more time your car will spend as “negative equity.” This is when the car’s cash value is less than the balance of the loan.

Finance Your Next Used Car at Straub Chrysler Dodge Jeep Ram!

After answering the question, “How long can I finance a used car,” we hope you are ready to finance a new-to-you vehicle in St. Clairsville, OH? Check out our impressive selection of pre-owned cars for sale at Straub Chrysler Dodge Jeep Ram, then come visit us in Glen Dale. Our finance team will help you secure reasonable rates and terms on your auto loan. In the meantime, kickstart the process by applying for financing online, then use our payment calculator to figure your estimated monthly payment into your budget.